Today's gap up and then down move proves that option 1 or 2 are in play here. So assessing today's move vide yesterday's analysis:
1) This could be the start of C wave correction. The correction will be choppy and we need to be very careful about the end of the correction because a strong up or down move may start with this correction.
today market came to 6161 i.e. very close to previous low of 6151. If this breached then we will start looking for an end to this correction close to 6050 i.e. another 100 points down expected.
2) downward wave 3 started. the huge spike in volume does suggest it could be a wave 3 down. however, then wave 2 was too small for that. If this is true then expected end of wave 3 =
wave 1*(1 to 1.6) = 329 to 526, therefore the target = 5940 to 5750. This is too steep. So looking somewhere around 6000. Below 6000, might be looking for these targets.
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